Total Cost of Ownership Calculator
The monthly payment is only part of what a car costs. Add insurance, gas or charging, maintenance, and depreciation to see the true cost per month, per year, and per mile.
What this car really costs
How it works
Total cost of ownership adds up everything a car costs you: the loan payment, insurance, gas or charging, and maintenance — plus depreciation, the value the car loses while you own it. Depreciation is usually the biggest hidden cost, and it is the one most buyers forget: a new car typically loses roughly 15–20% of its value in the first year alone.
Cost per mile is the fairest way to compare two cars. Divide the total cost over your ownership period by the miles you will drive, and you get a single number — often somewhere around 50 to 80 cents a mile for a typical car — that lets you compare a cheap car with high running costs against a pricier car that is cheap to run.
This is also why a used car is often cheaper to own than a new one: the first owner already paid for the steepest depreciation, while insurance and registration are usually lower too. The trade-off is higher maintenance as the car ages, which is why the maintenance field matters most for older cars.
Frequently asked questions
What is total cost of ownership?
It is everything a car costs you over the time you own it: loan payments and interest, insurance, gas or charging, maintenance and repairs, and depreciation — minus what the car is worth when you sell it.
What is depreciation?
It is the value a car loses over time. A new car typically loses roughly 15–20% of its value in the first year, then a smaller percentage each year after. It is a real cost even though you never write a check for it — it shows up when you sell or trade in.
Why does cost per mile matter?
Because it turns the total cost into one comparable number. Two cars with the same monthly payment can cost very different amounts per mile once insurance, gas, and depreciation are included.
Is a used car always cheaper to own?
Usually, but not always. A used car skips the steepest depreciation and often costs less to insure, but an older car can bring higher repair bills. A reliable used car with a good maintenance record is often the cheapest option overall.
Does this include registration and taxes?
This version focuses on the big recurring costs — loan, insurance, fuel, maintenance, and depreciation. Registration, taxes, and fees vary by state and add to the total, so check your state's rates before you buy.
How do electric cars compare on running costs?
Electric cars typically cost less per mile for energy and routine maintenance, since electricity is usually cheaper than gas and EVs have fewer moving parts. Insurance and depreciation can vary a lot by model, though, so run the numbers for the specific car you are considering.
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